House Passes $1.1-Trillion Federal Budget, Sends It to Senate

The House passed a $1.1-trillion federal budget for the 1989 fiscal year Thursday after negotiators from the House and Senate solved a monthlong dispute over domestic spending.

The measure was approved by a 201-181 vote and sent to the Senate, where it was expected to be accepted after that chamber returns from its Memorial Day recess next month.

The spending plan would satisfy the limits placed on defense, domestic and international affairs spending that were set in last fall’s budget agreement between President Reagan and congressional leaders.

It also would avoid automatic spending cuts under the Gramm-Rudman balanced budget law later in the year by producing a deficit just under the law’s $146-billion deficit ceiling.

New Defense Spending

The measure contains $299.5 billion in new defense spending, $18.1 billion for international affairs and $148 billion for domestic programs for the next fiscal year, which begins Oct. 1.

The last dispute that negotiators from the two chambers resolved was over new spending in domestic entitlement programs.

The House wanted to increase that spending by $100 million next year and $1.3 billion over three years, but the Senate sought a $500-million increase for 1989 and $2 billion more over three years.

Under the compromise, such spending will grow by $375 million next year and by $2.2 billion over the three years, with most used for nutrition programs for the poor.